Order date – 09 December 2022

Facts –

• The Petitioner’s, M/s Avinash Kumar Dhiraj, was issued with a show cause notice, whereas no reply to notice has been submitted and accordingly GST registration was cancelled under the provision of Section 29 of the Bihar Goods and Services Tax Act, 2017.
• An appeal filed by the petitioner for Revocation of order of cancellation has been rejected by the Additional Commissioner, State Tax (Appeals)

Issue –

• Whether rejection of revocation of order of cancellation of GST registration is in order?

Order –

• The Hon’ble High Court observed that not only the order is nonspeaking, but cryptic in nature and the reason of cancellation not decipherable therefrom. Principles of natural justice stand violated and the order needs to be quashed as it entails penal and pecuniary consequences.
• From the records which reveal that the petitioner had applied for registration which request was favourably considered by the authorities under the Act with a specific registration number allotted to the petitioner. After Covid-19 Pandemic, petitioner’s firm started work.
• In the peculiar facts and circumstances, the authority ought to have condoned the delay which unfortunately was not done, despite the petitioner having made a fervent request for condonation of delay in accepting the return, preventing cancellation of registration.
• Hence it was held that the impugned order is quashed with the petitioner’s registration restored, with a further direction to revenue to finalize the petitioner’s assessment and/or pass appropriate orders, in accordance with law.